Oil prices have stabilised after ‘heavy losses’ last week over concerns of global economic slowdown due to escalating US trade wars.

Front-month Brent crude futures gained three cents to trade at $62.02 a barrel, reported Reuters. The benchmark incurred a more than 3% loss last week. US West Texas Intermediate (WTI) crude futures traded at $53.74 per barrel, jumping 24 cents from the last close.

Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), indicated that the oil cartel and other leading petroleum producers will continue to manage supplies to prevent a surplus.

Saudi Energy Minister Khalid al-Falih was quoted by Reuters as saying: “We will do what is needed to sustain market stability beyond June. To me, that means drawing down inventories from their currently elevated levels.”

Global markets slumped last week after US President Donald Trump announced the imposition of tariffs on Mexican imports over illegal immigration from its southern neighbour. Mexico is one of the largest trade partner of the US, as well as a key supplier of crude oil.

Brent crude prices have dropped almost 20% from its 2018 peak owing to the trade crisis. The market earlier propped up driving on the supply curbs and the US sanctions on Iran and Venezuela.